Batteries are now cheaper than natural gas turbines used at many data centers
AI-summarised brief · reviewed before publication
A Wood Mackenzie report shows four‑hour battery storage is now cheaper than open‑cycle natural gas turbines in all 43 surveyed markets. Batteries outpace gas turbines worldwide, with costs projected to fall further while gas turbine prices rise. The shift follows rising gas turbine demand from AI‑driven data centers, which has driven up procurement times and prices. Solar remains the cheapest new power source globally, though U.S. tariffs and import restrictions add complexity. The trend signals a broader move toward storage‑based peaking power.
💡 Why It Matters
- · The cost advantage of batteries over gas turbines could force data‑center operators to rethink their power mix, accelerating the adoption of renewable‑based storage solutions.